Zota Health Care LImitedPharmaceuticals & HealthcareZOTA
Q1 FY27 concall · earnings callZota Health Care LImited
The company began FY27 with strong momentum, driven by retail network expansion and increased consumer footfalls, while planning a moderated pace of store openings to focus on productivity.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue from Operations | ₹173.6 Cr | 67.6% Y-O-Y | |
| Gross Margin | 61.96% | — | |
| Total Davaindia Stores | 2,825 | — | |
| Quarterly Customer Footfall | 60 lakhs | — | |
| Total GMV | ₹164.02 Cr | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹72.12 Cr+53.7% YoY+7.2% QoQ | ₹-18.95 CrLoss widened YoYLoss widened QoQ | ₹-6.80Loss/share widened YoYLoss/share widened QoQ |
| Q2 FY25 | ₹67.28 Cr+48.6% YoY+19.5% QoQ | ₹-12.18 CrLoss widened YoYLoss narrowed QoQ | ₹-4.57Loss/share widened YoYLoss/share narrowed QoQ |
| Q1 FY25 | ₹56.30 Cr+45.7% YoY+13.4% QoQ | ₹-12.72 CrLoss widened YoYLoss widened QoQ | ₹-4.80Loss/share widened YoYLoss/share widened QoQ |
| Q4 FY24 | ₹49.64 Cr+34.7% YoY+5.8% QoQ | ₹-6.92 CrLoss widened YoYLoss widened QoQ | ₹-2.68Loss/share widened YoYLoss/share widened QoQ |
| Q3 FY24 | ₹46.93 Cr— YoY+3.7% QoQ | ₹-2.94 Cr— YoYLoss widened QoQ | ₹-1.14— YoYLoss/share widened QoQ |
TL;DR
- Revenue grew 67.6% YoY to INR 17,360 lakhs.
- Gross margin improved to 61.96% YoY.
- Net addition of 246 Davaindia stores, taking total to 2,825.
- Customer footfall reached ~60 lakhs, up from ~35 lakhs YoY.
- Targeting cash breakeven by Q1 FY28.
Said on the call
“We are pleased to begin FY’27 on a strong note continuing the momentum built over the last two years.”
From the Q&A
| Topic | What management said |
|---|---|
| Employee & Other Expenses | Increase in employee expenses attributed to network expansion (~200 new stores); spike in other expenses due to marketing investments of INR 15-17 crore in Q1 related to brand ambassador Mahendra Singh Dhoni. |
| Store Economics & Maturation | A store typically matures in 12-18 months, reaching ~INR2.2-2.5 lakh monthly revenue; vintage cohorts show 234 stores (2021-2024) averaging INR4.13 lakh GMV/store/month with 12-15% EBITDA margins. |
| Path to Profitability | EBITDA expected to turn positive next quarter; cash breakeven anticipated by Q4 FY27 or Q1 FY28; underlying cash loss in Q1 was ~INR20 crore after adjusting for marketing and non-cash items. |
| Marketing Spend Outlook | Full-year marketing expense foreseen at INR 40-45 crores; Q1 spend was lumpy due to brand ambassador fees and campaign production, not indicative of a quarterly run rate. |
| Gross Margin Pressure | Q1 gross margin decline of ~1.5% attributed to increased input costs from geopolitical events; seen as temporary, with normalization expected over next 2-3 quarters and potential price increases. |
Guidance
- Moderate pace of store expansion in Q2 FY27 to focus on productivity.
- Target of 600-650 store additions for FY27.
- Expect to be EBITDA positive from next quarter onwards.
- Aim to achieve cash breakeven by Q4 FY27 or Q1 FY28.
- Full-year marketing spend foreseen at INR 40-45 crores.
Source
Summary written from the transcript filed by Zota Health Care LImited for the call held on 14 Aug 2026; published 20 Aug 2026, 19:08 IST.
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